Summer Moon Coffee
Summer Moon Coffee offers specialty coffees, teas, and baked goods in retail stores. Known for its wide range of beverages and food products, it operates in the casual dining and coffee shop industry.
Summer Moon Coffee franchise FAQ
How much does it cost to open one — the total initial investment?
This isn't specified in the excerpts. The provided FDD excerpts discuss costs related to the initial training and grand opening support fee, as well as ongoing operating expenses, but do not provide a comprehensive breakdown of the total initial investment required to open one SUMMER MOON Coffee Shop.
What is the initial franchise fee?
The initial franchise fee is $25,000 for each SUMMER MOON Coffee Shop. This amount is not refundable under any circumstances [p.12].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is a continuing fee payable by the franchisee for the right to use the marks and system in operating their SUMMER MOON Coffee Shop. These fees are based on a percentage of sales and recognized as services are provided, consistent with the Company's practical expedient under Topic 606 and Topic 952. [p.84, p.259]
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise. According to [p.114], if you are an individual person or multiple individuals, you may apply to the Franchisor to transfer the franchise to a business entity solely owned by you for the purpose of holding development rights and/or operating SUMMER MOON Coffee Shop. The Franchisor will waive certain fees and consent to such a transfer under specific conditions. Additionally, [p.47] states that the Franchisor may enter into a new Franchise Agreement with a purchaser who buys your franchise, allowing for potential relocation or granting of development areas as per current agreements.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law, as stated on [p.272]. Additionally, the franchisor has the option to terminate the agreement if there is an Adverse Change of Law that cannot be modified without undermining material elements of the franchise relationship or economic benefits, as detailed on [p.119] and [p.178].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, Shops owned by the company, or other channels of distribution or competitive brands that the company controls [p.43]. Additionally, any territorial protections end after your Development Agreement expires [p.48].
What training and ongoing support does the franchisor provide?
The franchisor provides initial mandatory training for the Training Team, which includes a maximum of five days in or around the Austin, Texas metropolitan area or at another location designated by the franchisor. This training is conducted before the expected opening date of the SUMMER MOON Coffee Shop and lasts approximately two weeks. Additionally, the franchisor may provide other mandatory or optional training programs, seminars, and materials to franchisees' employees as needed. [p.93, p.36]
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2023, there were 26 franchised SUMMER MOON Coffee Shops operating in the United States. The provided excerpts do not specify the number of franchised outlets that have closed or been terminated; they only provide information on those that were open and operating for the entire fiscal year ended December 31, 2023.
Does the franchisor share any financial performance or earnings information?
The franchisor is permitted to provide financial performance information if there is a reasonable basis for it and if such information is included in the disclosure document [p.62]. However, the franchisor does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets, nor do they authorize their employees or representatives to make such representations [p.64].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only permitted Approved Food and Beverage Products and Services, Proprietary Food and Beverage Products and Services, and related products and services for retail consumption. You must purchase certain proprietary items from Coffee Unplugged, including beverages amounting to $7,500 to $9,000 and additional supplies totaling approximately $15,000 before opening your SUMMER MOON Coffee Shop [p.14]. Additionally, you must buy or lease furniture, fixtures, equipment, signage, and leasehold improvements from approved sources designated by the franchisor [p.27].